A corporate bond's face value is $1000 and it matures in 8 years. Coupons are paid semi-annually. What is the bond's yield to maturity, if its coupon rate is 6.4% and it is currently trading for $1080.9? [Provide your answer in percent, with two decimals, omitting the % sign.]
Number of periods = 8 * 2 = 16
Coupon = (0.064 * 1000) / 2 = 32
Yield to maturity = 5.15
Keys to use in a financial calculator:
2nd I/Y 2
FV 1000
PV -1080.9
PMT 32
N 16
CPT I/Y
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